When the Social Security System Begins Running a Deficit During

question 649

Multiple Choice

When the Social Security system begins running a deficit during the years following 2018, the bonds in the trust fund will be drawn down. The funds to redeem these bonds will have to come from

• A) higher taxes, spending reductions in other programs, or additional government borrowing.
• B) the surplus funds deposited in governmental banking accounts.
• C) equity capital being liquidated.
• D) the sale of private equities and securities that the government has been purchasing with the funds.

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Definitions:

Need for Closure

A psychological term describing an individual's desire for a clear and definite answer to a question or decision, to avoid ambiguity or uncertainty.

Internal Locus of Control

The belief that one controls their own destiny and outcomes are primarily the result of their own efforts and actions.

Need for Cognition

A psychological trait referring to an individual's propensity to engage in and enjoy effortful cognitive activities.

Persuaded

Being persuaded refers to the process of being convinced to do something or to believe in something through reasoning or argument.